LEASES

6 Months Ended

Dec. 31, 2022

Leases [Abstract]

LEASES

LEASES

Lessee Accounting

The Company has operating leases for office space, warehouses, and office equipment. At December 31, 2022, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Balance Sheet Classification	As of December 31, 2022		As of June 30, 2022
Assets:	Operating lease right-of-use assets	$	1,778	$	2,370
Liabilities:
Current	Accrued expenses	$	1,346	$	1,538
Long-term	Operating lease liabilities, non-current	1,808		2,366
Total lease liabilities		$	3,154	$	3,904

The operating lease right-of-use assets are significantly lower than total lease liabilities as indicated in table above. The variance is primarily driven by impairment charges recognized on our right-of-use assets of $1.6 million in fiscal year 2021, when we optimized our corporate real estate footprint.

Components of lease cost are as follows:

($ in thousands)	Three months ended December 31, 2022	Three months ended December 31, 2021
Operating lease costs*	516	443

($ in thousands)	Six months ended December 31, 2022	Six months ended December 31, 2021
Operating lease costs*	1,052	885

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Six months ended December 31, 2022		Six months ended December 31, 2021
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,064	$	840
Non-cash activity:
Lease assets obtained in exchange for new operating lease liabilities	$	—	$	471

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases
Remainder of 2023	$	886
2024	1,029
2025	707
2026	628
2027	265
Total lease payments	$	3,515
Less: Imputed interest	(361)
Present value of lease liabilities	$	3,154

Lessor Accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	December 31, 2022		June 30, 2022
Cost	$	27,025	25,242
Accumulated depreciation	(22,621)		(22,914)
Net	$	4,404	$	2,328

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of December 31, 2022 are disclosed within Note 6 - Finance Receivables.

LEASES

LEASES

Lessee Accounting

The Company has operating leases for office space, warehouses, and office equipment. At December 31, 2022, the Company has the following balances recorded in the balance sheet related to its lease arrangements:

($ in thousands)	Balance Sheet Classification	As of December 31, 2022		As of June 30, 2022
Assets:	Operating lease right-of-use assets	$	1,778	$	2,370
Liabilities:
Current	Accrued expenses	$	1,346	$	1,538
Long-term	Operating lease liabilities, non-current	1,808		2,366
Total lease liabilities		$	3,154	$	3,904

The operating lease right-of-use assets are significantly lower than total lease liabilities as indicated in table above. The variance is primarily driven by impairment charges recognized on our right-of-use assets of $1.6 million in fiscal year 2021, when we optimized our corporate real estate footprint.

Components of lease cost are as follows:

($ in thousands)	Three months ended December 31, 2022	Three months ended December 31, 2021
Operating lease costs*	516	443

($ in thousands)	Six months ended December 31, 2022	Six months ended December 31, 2021
Operating lease costs*	1,052	885

* Includes short-term lease and variable lease costs, which are not material.

Supplemental cash flow information and non-cash activity related to our leases are as follows:

($ in thousands)	Six months ended December 31, 2022		Six months ended December 31, 2021
Supplemental cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	1,064	$	840
Non-cash activity:
Lease assets obtained in exchange for new operating lease liabilities	$	—	$	471

Maturities of lease liabilities by fiscal year for our leases are as follows:

($ in thousands)	Operating Leases
Remainder of 2023	$	886
2024	1,029
2025	707
2026	628
2027	265
Total lease payments	$	3,515
Less: Imputed interest	(361)
Present value of lease liabilities	$	3,154

Lessor Accounting

Property and equipment used for the operating lease rental program consisted of the following:

($ in thousands)	December 31, 2022		June 30, 2022
Cost	$	27,025	25,242
Accumulated depreciation	(22,621)		(22,914)
Net	$	4,404	$	2,328

The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of December 31, 2022 are disclosed within Note 6 - Finance Receivables.